Top Ten Reasons To File For Bankruptcy

Here are the top ten reasons why OTHER people file for bankruptcy.

1. Putting your family first! No money for gas, food or needed medication

If you are paying credit card bills and medical debts, but you cannot afford to put gas in your tank or cannot afford your prescription medications or to feed your family, it may be time to consider filing for bankruptcy. There are many reasons to consider filing bankruptcy, as we will explain, but the most important reason is you and your family. Many of our client, from New Richmond or Hudson or Rice Lake, tells us that they are not going to the dentist or cannot afford to see their chiropractor so they can pay the outstanding bills. Others say that they would like to be able to pick up the phone without a collection agency on the other end of the line. Many of our senior citizens that call from Spooner or Prescott say that they just cannot deal with the stress and aggressive and sometimes rude calls. Stop the harassment of unwanted collection calls and meet with us for your free consultation today.

2. Wage Garnishments or Bank Account Levy or Freeze.

The filing of bankruptcy puts an immediate stop to wage garnishments and bank levies. Whether you are in St.Paul or Cottage Grove or Chetek, filing for bankruptcy will stop your creditors from taking your hard earned wages. In some cases, we may be able to force your creditors to return wages they have taken from you in the last 90 days. If you are looking at your paycheck in St.Croix Falls or Amery or Turtle Lake, no matter where you are in Minnesota or Western Wisconsin, we can make the garnishment stop. Some of our clients erroneously believe that once a creditor has obtained a judgment it is too late to file bankruptcy or to stop the garnishment. The good news is that whether you have a judgment in St.Croix County or Polk County or Ramsey County the bankruptcy filing will stop the judgment creditor.

3. Payday loans and “Automatic Payments” from your bank account.

Recently a client from Dresser called to ask about bankruptcy but did not think bankruptcy could do anything about the automatic payments coming out of his bank account to pay an old Cable TV bill. Bankruptcy filing puts an immediate end to cell phone and cable companies taking money from your bank account. One client from River Falls thought she had to keep paying her payday loan no matter what happened. Payday lenders or Internet payday loans with very high interest will often set up automatic payments or have your checking account information or even a blank check at the ready if you fail to make your next high-interest payment. We were able to tell our client from Dresser, the good news, that bankruptcy can put an immediate end to these creditors taking money from your bank. Call today to schedule your home appointment or to meet with us in New Richmond Wisconsin or Stillwater Minnesota.

4. Judgments and Order for Disclosure which results in Bench Warrant.

If your creditors have obtained a judgment against you in Barron County or Washburn County or Dakota County or Hennepin County, wherever you might have been sued, they are likely to ask the Court for an Order for Disclosure – to make you tell your creditor to where you work (so they can garnish wages) where you bank (so they can levy and take your checking account funds) what you own (so they might take your assets). Recently a client from Balsam Lake Wisconsin called because they wanted to sell a piece of property and they could not do it because of the judgments that had attached to their Balsam Lake Wisconsin land and home. A judgment can create a lien against your real estate for 10 years or more, which may mean that you cannot sell your property without paying the creditor and you may have difficulty obtaining any credit due to the judgment. Whether you are in Balsam Lake or Shell Lake or Web Lake you can get those judgments released after your bankruptcy is completed. Once a bankruptcy is completed, where you have included and duly listed the judgment creditor, you can apply to the Polk County or Barron County, wherever the judgment was entered to have the judgment released once the debt has been discharged in bankruptcy.

5. Save your home and keep your car – Foreclosure and Repossession

If you home in Ladysmith or Hayward or Trego is threatened with foreclosure or your car in Barron or Cameron Wisconsin is an active repossession, you have a right to file for bankruptcy and reorganize your debts. Sometimes we are able to even remove your second mortgage (2ndor 3rd ) if your first home mortgage is more than the value of your home. A recent client from New Richmond Wisconsin owed over $200,000.00 to their first mortgage and an additional $50,000.00 on their second mortgage – on a home valued at less than $180,000.00. By filing for bankruptcy the second mortgage can be removed. Another client in Somerset had 3 mortgages and a client in River Falls had multiple mortgages, and all but the first mortgage were removed through Chapter 13 bankruptcy. The re-organization of your debts can keep you in your home and your kids in their school – again – your family needs come first.

6. Second (2nd) Mortgage Lawsuits after losing your home in Foreclosure or Short Sale

The Great Recession has resulted in many clients losing their homes through foreclosure – we have had numerous Minnesota clients in Stillwater, Lakeland, Bayport, Oak Park Heights, Cottage Grove, and Pine City threatened with foreclosure. We have had clients in Wisconsin, Hudson, Hammond, Roberts, New Richmond, Baldwin, Woodville, Glenwood City, River Falls, Prescott, Plum City, Hager City, and out to Glen Flora, Bruce and Ladysmith and up to Siren, Webster, Pear Lake, Milltown, Centuria, Amery, Turtle Lake, Clear Lake – you are not alone this has happened to great many people. Adding insult to injury, families lose their homes only to get sued by the 2nd mortgage and sometimes have wages garnished. Bankruptcy can erase the 2nd mortgage debt so you can have a fresh start.

7. Overwhelming Medical Debts

Each year some of the most emotional bankruptcy cases are clients who have incurred 20, 40, 60, 80, or over $100,000.00 in unpaid medical bills fighting cancer, hip and knee replacements, hospital stays and other medical needs. No one wants to be sick and unfortunately few of us can afford to be sick. If you owe Marshfield Clinic or Mayo Health or Lakeview Medical and you live in Rice Lake Wisconsin or Cameron or Chetek or Barron just contact our office and bankruptcy can erase those debts. Many of our clients owe River Falls Medical Center, Hudson Hospital, Westfields Hospital, Osceola Medical Center, St.Croix Falls Regional Medical, Amery Medical Center, Shell Lake Clinic, Spooner Health or Rusk County Medical Center. You are not alone is owing medical bills. Our Minnesota clients often owe Allina Medical or Regions Hospital or Hennepin County Medical Center large debts that simply cannot be repaid. Bankruptcy can help – so call us for a free consultation.

Many clients are worried that if they file on medical bills they will not be allowed to return to their hospital, clinic or doctor for future medical treatment. In over 15 years of experience, we have found that clients are able to return and to continue seeing their medical provider after bankruptcy. Some medical providers will insist that you pay your co-pay at the time of your appointment, but some insist on those conditions even without bankruptcy.

8. Old Income Tax Debts

Clients are often surprises that old income tax debt can be erased in bankruptcy. While discharging tax debt in bankruptcy can be complicated, it is possible to erase old tax debts. Internal Revenue Service (IRS) and Department of Revenue income tax debt must meet numerous criteria in order to be eligible for discharge in bankruptcy. In order to be considered for a discharge of your personal income tax debt, you must have filed your return and a certain amount of time, several years must have passed since your tax filing. If the tax authorities have tax liens in place or you have been audited or your income tax was assessed because you did not file – you may not be eligible to discharge your tax debt in bankruptcy. The rules are quite complicated so call for a free consultation with one of our attorneys to see if bankruptcy can help with your tax debts.

9. Business Debts

The Great Recession has put many folks out of business. We have many clients who used to own a truck or trucking business in Stillwater or Eagan Minnesota or Spooner, Balsam Lake, or Amery Wisconsin. They were able to erase their business debts and start fresh. Some of our clients in Stillwater Minnesota and Cameron Wisconsin had restaurants they used to own and run but were forced out of business by the economy. Other clients in Hudson and Bayport Minnesota ran personal exercise, sport and fitness businesses that were forced to close due to the Great Recession. Clients in Eau Claire, Hudson and Rice Lake Wisconsin ran beauty shops, tanning, and other personal beauty business until the economy failed them. Larger business owners were affected as well, including golf course owners, mall owners, and liquor store operators from Siren to Webster to Turtle Lake and Clear Lake. Many of these clients had credit card debts and Small Business Administration Loans which they could not pay back once they were out of business. Our attorneys have the expertise that comes with years of experience, not just a few years – but over a decade, to help you start over.

10. Divorce or bad relationship break-up or even a new marriage

No one likes to end a relationship or start a new one with overwhelming debt. Whether you are divorcing in Washington County Minnesota in Stillwater or getting ready for a new marriage in Hayward Wisconsin or Menomonie or Ridgeland or Dallas Wisconsin, bankruptcy can be a big help in putting behind you a bad relationship (who wants to divorce and then pay for the credit card charges of your ex-spouse) and starting a new relationship with a clean slate (give your new relationship the best chance to succeed by not bringing old debts to a new marriage). Many of our clients come in with this objective in mind. Bankruptcy can be the fresh start you need to move forward.

Are you experiencing one of these hardships?

If any of these reasons sound familiar to you. Give us a call today! You’re not alone!